Daily Technical Outlook 4th January

During the final trading day of 2015, the Euro traded under pressure as bulls failed to overtake 1.0990 resistance level for two consecutive times.

From a technical standpoint, the pair has broken below its hourly support level located at 1.0870, which keep the short-term outlook negative by now.

Currently, the single currency should trade lower during the next hours and the nearest support stands at 1.0847 level, from where we expect prices to recover for a short period before the bearish trend resume.

Momentum indicators have switched to negative, and a re-test of 1.0800 daily support cannot be ruled out.

To summarize, the near-term view is negative and as far as prices keep trading below 1.0942 level, downside risks will remain intact.

In the opposite, a daily close above this resistance level will change this negative outlook.

Support: 1.0847-1.0800-1.0730

Resistance: 1.0900-1.0942-1.0990

GBP/USD

The Sterling kept on declining as investor’s sentiment remain strongly negative in this pair.

Prices did an attempt to break above 1.4845 resistance level, but saw a strong rejection by the bears and the pair fell sharply to reach as low as 1.4732 level during the US trading session.

Cable bears managed to send prices below the hourly support, which stands at 1.4785 and consequently, the pair has entered into a free falling zone.

The near-term target is located at 1.4700 psychological level, while a break below this support should clear the way for further decline in this pair.

Our view is bearish regarding the British pound and we expect the pair to remain under pressure as far as 1.4845 peak is in place.

In the other side, a daily close above 1.4845 will signal a potential bullish reversal in the short-term.

Support: 1.4785-1.4700-1.4600

Resistance: 1.4845-1.4910-1.4955

USD/CAD

The pair traded in line with our forecasts and headed south during last week as profit taking gave a temporary boost to the Canadian Dollar.

Bears succeeded to push prices below 1.3850 support level in the hourly chart, which reinforced the probability of a deeper correction to the downside in the coming hours.

As of now, 1.3937 level represent the bearish pivot in the near-term and as far as prices keep trading below this peak, we can see prices falling towards 1.3755-1.3700 zone before to see a bullish reaction again.

To summarize, the trend remain bullish in the med-term and we believe that the pair is likely to remain steady above 1.3515 level, while in the near-term, we expect the pair to trade lower into a downside correction towards the mentioned above levels before bullish pressure to resume.

Support: 1.3810-1.3755-1.3700

Resistance: 1.3900-1.3925-1.3937

AUD/USD

The Australian Dollar has reached as high as 0.7327 level before to reverse sharply lower by the end of the session.

Looking at the hourly chart, we can see that the pair showed a strong bearish engulfing candle, which may signal a potential bearish reversal in the near-term.

Technically, the pair is testing an important support level in the hourly chart located at 0.7270 level. In the meantime, a bearish divergence has emerged in the RSI indicator reinforcing the probability of a downside move in the short-term.

Consequently, traders should watch the price action near this support, as a break below it, is likely to send prices in the direction of 0.7245.

Meanwhile, 0.7300 psychological level represent the bearish pivot in the near-term, and as far as prices keep trading below this level, downside pressure will persist.

Support: 0.7270-0.7244-0.7225

Resistance: 0.7300-0.7330-0.7385

USD/JPY

USD/JPY keep fighting to recover in the hourly chart as bears keep controlling this pair.

Currently, we expect the pair to find strong support around 120.00-119.90 zone and the pair is likely to keep trading sideways until we see a clear break of either, 120.00 level in the downside or 120.60 in the upside.

Actually, our view is flat in the near-term, and traders should wait for price action to develop further in the next hours before taking new trading decisions.

To summarize, and referring to the daily chart, we believe that the pair is likely to remain under pressure as far as 121.75 peak remain intact, while in the near-term, prices are stuck inside a range between 120.00 and 120.60 levels.

Support: 120.00-119.90-119.05

Resistance: 120.60-121.75-122.30

GOLD

The yellow metal weakness continued after prices managed to drop below 1067$ support level.

In the near-term, gold should trade lower towards 1053$ per ounce. And as far as 1072 peak is in place, the outlook will remain strongly bearish.

As of now, we expect prices to follow two paths in the following days. Either a retracement towards 1067$ former support, which will act as a resistance by now, before bearish pressure to resume.

Or, we can see a continuation lower in the next hours from the current levels.

To conclude, our view is negative on gold and traders should look to sell the yellow metal on rallies instead of buy it on dips as far as 1072 peak remain intact.

Support: 1058-1055-1053

Resistance: 1063.50-1072-1075

NZD/USD

The New Zealand Dollar traded sideways to slightly lower during last Thursday, which keep the current bullish trend unchanged.

The trend remain bullish in the hourly chart as far as 0.6760 still intact, and regarding the near-term, traders should focus on 0.6830 support as a break below this level will signal the beginning of a correction lower in the direction of 0.6805-0.6790 zone.

To summarize, our view is bullish and we believe that prices could target 0.6900 level in the next days, while in the short-term we are seeing the decline as a buying opportunity as far as 0.6760 lows still holding.

Support: 0.6830-0.6805-0.6760

Resistance: 0.6865-0.6900-0.6920

Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Risk Disclosure: GuruTrade assumes no liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and forex signals. Operations in the international foreign exchange market contain high levels of risk. Forex trading may not be suitable for all investors. speculating only the money you can afford to lose. GuruTrade remind you that the data contained in this website is not necessarily real-time and may not be accurate. All stock prices, indexes, futures are indicative and not appropriate for trading. Thus, GuruTrade assumes no responsibility for any trading losses you might incur as a result of using this data. Version of the document in English is a defining and shall prevail in the event that there are discrepancies between the English and Russian languages. Seeking stocks, quotes, charts and forex? Take a look at the portal GuruTrade.com - the best directory of brokers and modern economic calendar for your service!